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Unilever’s Exciting New Direction Under New CEO

Unilever's marketing team strategizing their new direction under CEO Fernando Fernandez.

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News Summary

Unilever, under new CEO Fernando Fernandez, is adopting a bold marketing strategy focused on social media and influencer collaborations. With a significant budget increase for social channels, the brand aims to engage more local influencers to connect authentically with consumers. Despite past job cuts, Unilever is ready to invest in AI-driven content creation while navigating key global markets, adapting to rapid changes in consumer behaviors.

Unilever’s Exciting New Direction Under New CEO

Unilever is making big waves in the marketing world with a fresh approach under its new CEO, Fernando Fernandez. With nearly four decades of experience at Unilever, including roles as CFO and President of Beauty and Well-being, Fernandez is ready to steer the company in a bold new direction. After taking over the reins from Hein Schumacher, he’s announced a significant shift in the company’s marketing strategy that has everyone buzzing.

Going Social: Unilever’s New Marketing Strategy

One of the most exciting changes is that Unilever is ramping up its spending on social media. Specifically, the company plans to increase its media budget for social channels from 30% to an impressive 50%. This is a huge leap and signals a clear move towards a more social-first advertising model. As consumers become increasingly skeptical of traditional corporate messages, Unilever is responding by diving into the world of social media with both feet.

A New Wave of Influencers

But that’s not all! Unilever also has plans to collaborate with 20 times more influencers as part of this strategy. This means that instead of just partnering with a handful of well-known personalities, the brand is looking to engage with a much broader range of influencers. The goal? To connect with consumers on a local level. For instance, they plan to target specific municipalities in Brazil and every ZIP code in India. This hyper-local focus is expected to resonate better with consumers who crave authentic connections over generic corporate messaging.

Embracing the Digital Age

Fernandez has made it clear that Unilever will adopt a “machine-like” approach to content creation, leveraging the power of AI technology. This means that the company is looking to streamline its marketing processes, ensuring they can produce relevant and engaging content quickly and efficiently. In the past, Unilever has invested around 15.5% of its budget into marketing, an increase from 13% two years ago. It’s evident that the company is ready to invest even more to keep up with rapidly changing consumer behaviors.

Job Cuts and Future Directions

Last year, Unilever did face tough decisions, resulting in 7,500 job cuts to save around €800 million. However, moving forward, it seems the company is keen on utilizing its resources more effectively. Analysts are observing this shift with great interest, especially since the average marketing budget for influencer collaboration is around 6% right now. Claudia Ratterman, an analyst from Gartner, points out that while Unilever is making bold moves, it may take other companies time to catch up, given the scale of these changes.

The Need for Genuine Engagement

The marketing landscape has undergone significant changes. With new social media algorithms making it harder for brands to engage audiences organically, companies need to ensure their investments in creator content truly reach their target audiences. Short-lived influencer campaigns won’t cut it anymore; brands need to focus on establishing long-term partnerships to build credibility and lasting connections.

Looking Ahead

As Unilever navigates this exciting new chapter, the company is focusing its efforts on key markets, including the U.S., India, China, and Indonesia. By creating tailored marketing approaches that address specific market demands and consumer preferences, Unilever aims to position itself as a leader in the fast-moving consumer goods sector.

As we watch these developments unfold, it’s clear that Unilever’s shift towards a social-first strategy and its embrace of influencer partnerships could redefine how brands connect with consumers in the digital age. Everyone in the marketing world will be keeping a close eye on how this all plays out!